Thriving Through Partnership

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Thriving Through Partnership

• October 3 4, 2005
• Chicago Marriott OHare Hotel

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WELCOMEtoFSS 201 TRAININGSuccessfully
Administering Your FSS Contract for Maximum
Results
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Agenda Outline

• I. Customer Perspective
• II. Show-stoppers
• III. Deliverables
• Sales Reporting IFF
• Subcontracting Plan
• Summary Subcontracting Reports
• FSS Pricelists
• IV. Discrepancies
• Novation
• Name Change

• V. Disputes
• Common Performance Complaints
• VI. Database Compliance
• CCR
• Vets 100
• VII. Contract Modification
• Administrative changes
• Product Additions/Deletions
• Product Changes
• Price Increases/Decreases

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Four-Fold Customer Perspective
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Contract Performance Show-stoppers
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Contract Performance Show-stoppers

• Delinquent Quarterly Sales IFF Reporting
• Expired Subcontracting Plan
• Overdue Summary Subcontract Reporting
• Outstanding FSS pricelists and E-commerce tools
• Unprocessed Novation Name Change Agreement
• Unresolved Contract Performance Complaints
• VETS-100 Non-compliance
• Central Contractor Registration Non-compliance

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Contract Deliverables

• Keeping your contract award compliant requires
  timely submission of the following deliverables
• Quarterly Sales IFF Reporting
• Subcontracting Plan (when applicable)
• SF294 and SF295 Subcontracting Achievement
  Reports (when applicable)
• Pricelist submission (hardcopy/electronic
  supplemental and/or cumulative)

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Quarterly Sales Report IFF(552.238-74)

• Timely submission of quarterly sales report and
  Industrial Funding Fee (IFF)
• Due 60 days after end of each reporting quarter
• Quarter 1 (Oct Dec)
• Quarter 2 (Jan Mar)
• Quarter 3 (Apr Jun)
• Quarter 4 (Jul Sep)

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Subcontracting Plan Summary Subcontracting
Report (FAR 19.7)
SF 294 SF 295
S/C PLAN
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Subcontracting Plans (FAR 19.7)

• Annually renewing subcontracting plans (if
  applicable)
• Commercial Plan covers the contractors fiscal
  year and applies to entire production of
  commercial items
• Company-wide (entire company)
• Division-wide (a portion of the company)
• Individual Plan covers the entire contract
  period and applies to a specific contract
• Plan submission expected not later than 60 days
  prior to expiration of current plan.

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Subcontracting Summary Achievement Report

• Annually entering subcontracting summary
  achievement report data
• SF 294
• Required for Individual Plans
• Due 30 days after close of reporting period
  April 30th and October 30th
• SF 295
• Required for Commercial and Individual Plans
• Due by October 30th
• Electronic Subcontracting Reporting System (eSRS)
• http//www.esrs.gov/

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• Authority GSA delegated to Veterans Affairs
  National Acquisition Center the responsibility
  for the Federal Supply Schedule program for
  medical care related supplies, equipment,
  pharmaceuticals and services

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FSS Price lists and E-Commerce Tools

• FSS Price Lists and Related Tools must be
  established and kept current for the benefit of
  NAC, Contractor and Ordering Facilities.
• Schedules E-Library
• www.gsaelibrary.gsa.gov
• GSA Advantage! / e-Buy
• www.gsaadvantage.gov
• NAC Contract Catalog Search Tool
• http//vaww1.va.gov/oamm/nac/secr.htm (intranet)
• http//www1.va.gov/oamm/nac/secr.htm (internet)

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FSS Pricelist Process
Contract Award
NAC CO inputs Contract Award information into NAC
CM Database
Contractor submits hardcopy pricelist and
electronic pricing to NAC CO
General contract information uploaded to GSA
Schedules e-Library
General contract information and pricing uploaded
to NAC Contract Catalog Search Tool
Contractor submits contract pricing information
for uploaded to GSA Advantage!
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NOVATION/NAME CHANGE AGREEMENTS
NOVATION
NAME CHANGE
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Novation Agreements (FAR 42.1204)

• Assuring the expeditious processing of Novation
  Agreements.
• A Novation Agreement is required when a third
  party (the successor in interest) acquires its
  interest in a government contract out of the
  transfer of
• All the contractors assets or
• The entire portion of the assets involved in
  performing the contract

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Novation Agreements (FAR 42.1204)

• Examples of transactions requiring a novation.
• Sale of assets with a provision for assuming
  liabilities.
• Transfer of assets incident to a merger or
  corporate consolidation and
• Incorporation of a proprietorship or partnership
  or formation of a partnership

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Novation Agreements (FAR 42.1204)

• A novation is not necessary when
• A change of ownership occurs as the result of a
  stock purchase, with no legal change in the
  contracting party, and when the contracting party
  remains in control of the assets and is
  performing the contract. (FAR 42.1204(b))
• FAR states that any issues in this case can be
  addressed in a formal agreement between the
  contractor and government.

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Name Change Agreements(FAR 42.1205)

• Assuring the expeditious processing of Name
  Change Agreements.
• A Name Change Agreement is only appropriate when
  the legal entity remains the same (e.g. corporate
  name was ABC they filed an amendment to the
  corporate charter and the new name is XYZ).
• FAR 42.1205(b) contains the suggested format

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Common Performance Complaints

• Quality Issues
• Product Recalls
• Delivery Issues
• Warranty Issues
• Billing Issues

Failure to reasonably resolve these issues are
documented as past performance deficiencies and
may negatively impact upon future buys and
contract awards.
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Database Compliance

• Ensure that the following are kept current
• Annual VETS-100 reporting in accordance with
  Clause 52.212-5(20)
• http//vets100.cudenver.edu/
• Annual Central Contractor Registration (CCR) in
  accordance with Clause 52.212-4(t)
• http//www.ccr.gov/ or 1-888/227-2423

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Impact of Contractual Noncompliance

• Delay or denial of
• Modification processing
• Payment processing
• Purchase order processing
• Future contract award
• Contract termination

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Contract Modification

• Clause 552.243-72, Modifications (Multiple Award
  Schedule)
• Contractor may request a contract modification by
  submitting a written request along with the
  required modification request form to the
  Contracting Officer for approval.
• At a minimum, every request shall describe the
  proposed change(s) and provide the rationale for
  the requested change(s).

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Processing of Modification Actions

• Effective submission and timely processing take
  into account
• The number of modification requests submitted
• The length of time between submission
• The inclusion of the modification request form
• The inclusion of supporting documentation with
  the modification requests

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Common Types of Modification Actions

• General administrative changes
• Product changes
• Product deletions
• Product additions (CSP)
• Price reductions and Price increases

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General Administrative Changes

• Address changes
• Contract Administrator changes
• Payment address changes
• Clause updates initiated by NAC

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Product Changes

• Part number changes
• Product description changes
• Unit of measure changes
• Packaging and Quantity changes
• Production point changes

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Product Deletions

• Contractors must provide an explanation for the
  deletion.
• Government reserves right to reject any
  subsequent offer of the same item or a
  substantially equal item at a higher price during
  the same contract period, if it is determined the
  higher price is unreasonable in comparison.

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Product Additions

• ADDITION OF NEW SIN
• Paragraphs (1) and (2) of CSP Format
• Paragraphs (3) through (5) of CSP Format, unless
  this information is the same as the initial award
• Commercial Pricelist
• Letter of Commitment from manufacturer(s), (if a
  distributor)
• Delivery time(s) (clause 552.211-78)
• Production point(s) (clause 52.215-6)
• Hazardous Material information (clause 52.223-3)
• Trade Agreement compliance (clause 52.212-3(f))

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Commercial Sales Practice Format

• Note Please refer to clause 552.212-70,
  PREPARATION OF OFFER (MULTIPLE AWARD SCHEDULE),
  for additional information concerning your offer.
  Provide the following information for each SIN
  (or group of SINs or SubSIN) for which
  information is the same.
• 1.  Provide the dollar value of sales to the
  general public at or based on an established
  catalog or market price during the previous 12
  month period or the offerors last fiscal year.
• SIN __________ SIN __________ SIN __________
• State beginning and ending of the 12 month
  period. Beginning __________ Ending______________
  . In the event that a dollar value is not an
  appropriate measure of the sales, provide and
  describe your own measure of the sales of the
  item(s).
• 2.  Show your total projected annual sales to the
  Government under this contract for the contract
  term, excluding options, for each SIN offered. 
  If you currently hold a Federal Supply Schedule
  contract for the SIN the total projected annual
  sales should be based on your most recent 12
  months of sales under that contract. 
• SIN__________ SIN __________ SIN __________
• 3.  Based on your written discounting policies
  (standard commercial sales practices in the event
  you do not have written discounting policies),
  are the discounts and any concessions which you
  offer the Government equal to or better than your
  best price (discount and concessions in any
  combination) offered to any customer acquiring
  the same items regardless of quantity or terms
  and conditions? YES____NO_____.  See definition
  of "concession" and "discount" in 552.212-70.

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Commercial Sales Practice Format

• 4.  (a) Based on your written discounting
  policies (standard commercial sales practices in
  the event you do not have written discounting
  policies), provide information as requested for
  each SIN (or group of SINs for which the
  information is the same) in accordance with the
  instructions at Table 515-1 which is provided in
  this solicitation for your convenience.  The
  information should be provided in the chart below
  or in an equivalent format developed by the
  offeror.  Rows should be added to accommodate as
  many customers as required. 

(b) Do any deviations from your written policies
or standard commercial sales practices disclosed
in the above chart ever result in better
discounts (lower prices) or concessions than
indicated? ( )YES ( ) NO.  If YES, explain
deviations in accordance with the instructions at
Table 515-1 which is provided in this
solicitation for your convenience
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Commercial Sales Practice Format

• 5.  If you are a dealer/reseller without
  significant sales to the general public, you
  should provide manufacturers' information
  required by paragraphs (1) through (4) above for
  each item/SIN offered, if the manufacturer's
  sales under any resulting contract are expected
  to exceed 500,000.  You must also obtain written
  authorization from the manufacturer(s) for
  Government access, at any time before award or
  before agreeing to a modification, to the
  manufacturer's sales records for the purpose of
  verifying the information submitted by the
  manufacturer.  The information is required in
  order to enable the Government to make a
  determination that the offered price is fair and
  reasonable.  To expedite the review and
  processing of offers, you should advise the
  manufacturer(s) of this requirement.  The
  contracting officer may require the information
  be submitted on electronic media with
  commercially available spreadsheet(s).  The
  information may be provided by the manufacturer
  directly to the Government.  If the
  manufacturer's item(s) is being offered by
  multiple dealers/resellers, only one copy of the
  requested information should be submitted to the
  Government.  In addition, you must submit the
  following information along with a listing of
  contact information regarding each of the
  manufacturers whose products and/or services are
  included in the offer (include the manufacturer's
  name, address, the manufacturer's contact point,
  telephone number, and FAX number) for each model
  offered by SIN
• a.      Manufacturer's Name
• b.      Manufacturer's Part Number
• c.      Dealer's/Reseller's Part Number
• d.      Product Description
• e.      Manufacturer's List Price
• f.      Dealer's/Reseller's percentage discount
  from List Price or net prices

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Product Additions

• ADDITION OF PRODUCT FOR AN EXISTING SIN
• Paragraphs (3) through (5) of CSP Format, unless
  this information is the same as the initial award
• Commercial Pricelist
• Letter of Commitment from manufacturer(s), (if a
  distributor)
• Delivery time(s) (clause 552.211-78)
• Production point(s) (clause 52.215-6)
• Hazardous Material information (clause 52.223-3)
• Trade Agreement compliance (clause 52.212-3(f))

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Commercial Sales Practice Format

• 3.  Based on your written discounting policies
  (standard commercial sales practices in the event
  you do not have written discounting policies),
  are the discounts and any concessions which you
  offer the Government equal to or better than your
  best price (discount and concessions in any
  combination) offered to any customer acquiring
  the same items regardless of quantity or terms
  and conditions? YES____NO_____.  See definition
  of "concession" and "discount" in 552.212-70.
• 4.  (a) Based on your written discounting
  policies (standard commercial sales practices in
  the event you do not have written discounting
  policies), provide information as requested for
  each SIN (or group of SINs for which the
  information is the same) in accordance with the
  instructions at Table 515-1 which is provided in
  this solicitation for your convenience.  The
  information should be provided in the chart below
  or in an equivalent format developed by the
  offeror.  Rows should be added to accommodate as
  many customers as required. 

(b) Do any deviations from your written policies
or standard commercial sales practices disclosed
in the above chart ever result in better
discounts (lower prices) or concessions than
indicated? ( ) YES ( ) NO.  If YES, explain
deviations in accordance with the instructions at
Table 515-1 which is provided in this
solicitation for your convenience
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Commercial Sales Practice Format

• 5.  If you are a dealer/reseller without
  significant sales to the general public, you
  should provide manufacturers' information
  required by paragraphs (1) through (4) above for
  each item/SIN offered, if the manufacturer's
  sales under any resulting contract are expected
  to exceed 500,000.  You must also obtain written
  authorization from the manufacturer(s) for
  Government access, at any time before award or
  before agreeing to a modification, to the
  manufacturer's sales records for the purpose of
  verifying the information submitted by the
  manufacturer.  The information is required in
  order to enable the Government to make a
  determination that the offered price is fair and
  reasonable.  To expedite the review and
  processing of offers, you should advise the
  manufacturer(s) of this requirement.  The
  contracting officer may require the information
  be submitted on electronic media with
  commercially available spreadsheet(s).  The
  information may be provided by the manufacturer
  directly to the Government.  If the
  manufacturer's item(s) is being offered by
  multiple dealers/resellers, only one copy of the
  requested information should be submitted to the
  Government.  In addition, you must submit the
  following information along with a listing of
  contact information regarding each of the
  manufacturers whose products and/or services are
  included in the offer (include the manufacturer's
  name, address, the manufacturer's contact point,
  telephone number, and FAX number) for each model
  offered by SIN
• a.      Manufacturer's Name
• b.      Manufacturer's Part Number
• c.      Dealer's/Reseller's Part Number
• d.      Product Description
• e.      Manufacturer's List Price
• f.      Dealer's/Reseller's percentage discount
  from List Price or net prices

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Tracking Customer and Ratio

• Tracking customer ratio determined by dividing
  Government net price by agreed upon tracking
  customer net price
• EXAMPLE
• Awarded tracking customer MFC
• Awarded FSS price 5.00
• MFC price at award 10.00
• Tracking Ratio 5.00/10.00 .50
• Agreed to tracking customer and subsequent ratio
  will affect price changes

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Termination/Cancellation

• Contract Termination
• Convenience Ordering activities reserve the
  right to cancel purchase/delivery orders placed
  against an FSS contract in whole or in part for
  their sole convenience.
• Cause Ordering activities may terminate
  purchase/delivery orders placed against an FSS
  contract in whole or in part for cause in the
  event of any default by the contractor.
• Cancellation
• Either party (National Acquisition Center or
  Contractor) may cancel the FSS contract in whole
  or in part by providing a written notice. The
  cancellation will take effect 30 calendar days
  after receipt of notification.

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• Success has always been easy to measure. It is
  the distance between ones origins and ones
  final achievement
• Michael Korda

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FSS 201 TrainingPrice Reductions Price
Increases
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Price Reductions Price Increases

• Objective
• Provide an overview of clauses applicable to
  price reductions and price increases
• Discuss Contractor and Government responsibility
  in processing these request
• Provide examples of request for price decreases
  and increases

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Price Reductions

• Authority
• Price Reduction Clause (PRC) 552.238-75
• Purpose
• Ensure the Government maintains fair and
  reasonable pricing throughout the contract period

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Price Reductions

• Price Reduction Clause (PRC) 552.238-75
• Establishment of commercial relationship that is
  tracked against the awarded FSS
• Agreement of both parties
• Tracking Customer ratio is determined by dividing
  net price to the government by the net price to
  the agreed upon Tracking Customer
• If the ratio is disturbed with a decrease to the
  basis of award customer, automatic decrease to
  the government
• Maintained throughout the contract period

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Price Reductions

• Exceptions
• Commercial agreement with tracking customer
  expires, canceled or merged with another group,
  the CO shall be notified within 10 calendar days
  after the event occurs, and if possible, before
  the event occurs.

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Price Reductions

• Voluntary to Government Only
• Permanent or Temporary
• May submit anytime

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Price Reductions

• Three (3)Ways to Trigger the Price Reduction
  Clause
• (1) Revised commercial catalog to reduce prices
• (2) Granted better discounts or terms and
  conditions than those contained in the commercial
  catalog
• Offered for the same length of time
• (3) Granted additional discounts to the tracking
  customer, disturbing the ratio
• Notify the Government within 15 days

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Price Reductions

• Not Triggered
• Sales to commercial customers which exceed the
  maximum order threshold
• Additional discount to a single federal facility

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Price Reduction - Examples
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Price Reductions

• Ratio x Tracking Customers Reduced Price The
  Maximum FSS Price
• Example 1
• .99(64.15) 63.51
• Proposed FSS Price of 63.51 is acceptable
• Example 2
• 1(75.00) 75.00
• Proposed FSS Price of 75.00 is acceptable

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Price Increases
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Price Increases

• Authority
• Economic Price Adjustment Clause (EPA)
  552.216-70 FSS Multiple Award Schedule Contracts
  (SEP) 1999) Alternate I (SEP 1999) (Local
  Deviation)

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Price Increases

• Allows price increases in accordance with
  commercial practices
• Contractor Requirements
• Copy of commercial pricelist which shows increase
  and effective date
• Reason for the increase
• CSP or Certification that no adverse change has
  occurred in the ratio since the award of the item

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Price Increases

• When ALL of Following Conditions are met
• Increase in commercial catalog/pricelist
• Increase requested before the last 60 days of the
  contract period
• 30 days between requested increases
• Established tracking customer ratio is not
  disturbed

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Price Increases

• Government Options
• Accept the proposal when all conditions above are
  met (Fair and reasonable determination)
• Negotiate more favorable discounts
• Remove the products from the contract

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Price Increase - Examples
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Price Increases

• Ratio x Tracking Customers Increased Price
  The Maximum FSS Price
• Example 1
• Contractor proposed a 10 increase across the
  board
• .90(55.00) 49.50
• Proposed FSS Price of 49.50 is within the
  allowable Max. FSS and is acceptable
• Example 2
• Contractor increased commercial pricelist 25 and
  proposed a 25 increase to the Government.
• The Tracking Customer price increased by 20
• .80(30.00) 24.00
• Proposed FSS Price of 25.00 is not acceptable
  exceed Max. FSS
• Example 3
• Contractor increased commercial list price 100
• Increased Tracking Customer price 50
• Proposed a 50 increase to the government
• .50(15.00) is within the allowable Max FSS and
  is acceptable

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Price Reductions Price Increases Summary

• Understand how the tracking customer ratio is
  established
• Develop a system to track the discounts extended
  to the tracking customer to ensure compliance
  with PRC
• Know the (3) PRC triggers
• Recognize discounts which will not trigger the
  PRC
• Permanent/Temporary
• Voluntary to Government only Submitted any time

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Price Reductions Price Increases Summary

• Price increases can be accepted under the (EPA)
  clause when all conditions below are met
• Increase in commercial list price
• Requested before the last 60 days of the contract
• 30 days between increases
• Established tracking customer ratio is not
  disturbed

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Federal Supply Schedules

• 65 I B Drugs, Pharmaceuticals Hematology
  Related Products
• 65 II A Medical Equipment and Supplies
• 65 II C Dental Equipment and Supplies
• 65 II F Patient Mobility Devices
• 65 VA X-Ray Film, Equipment and Supplies
• 65 VII Diagnostics, Reagents, Test Kits and
  Sets
• 66 III Cost-Per-Test for Clinical Laboratory
  Analyzers
• 621 I Professional and Allied Healthcare
  Staffing
• 621 II Medical Laboratory Testing and Analysis
  Services

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PRESENTERS

• James L. Booth
• Program Manager/Lead Contract Specialist for
  Medical Equipment and Supplies
• [phone]
• james.booth_at_med.va.gov
• Sandra Perkins
• Program Manager/Lead Contract Specialist for
  Dental Equipment Supplies, Patient Mobility
  Devices X-ray Equipment and Supplies
• [phone]
• sandra.perkins_at_med.va.gov
• Copy of Presentation will be made available after
  5 p.m. on October 4 at www.va.gov/vastorenac

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Director and Assistant Directors
Carole OBrien Director, Federal Supply Schedule
Service [phone] Paul Skalman Assistant
Director, Medical Equipment and Supplies (708)
786-5247 Cheryl Ward-Roberts Assistant Director,
Pharmaceutical, Dental and Other (708)
786-5259 Dore Fessler Assistant Director, Medical
Services [phone]
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Schedule Managers
James Booth Schedule Manager 65IIA -Medical
Equipment and Supplies [phone] Sandra
Perkins Schedule Manager 65 IIC - Dental
Equipment and Supplies 65IIF - Patient Mobility
Devices 65 VA - X-Ray Equipment and
Supplies [phone] Bob Satterfield Schedule
Manager 65 IB - Pharmaceuticals 65 VII -
Diagnostics, Reagents, Test Kits and Sets (708)
786-4955
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Schedule Managers

• Darlene McGary
• Schedule Manager
• 621 II Medical Laboratory Testing and Analysis
• 66 III Cost-Per-Test, Clinical Laboratory
  Analyzers
• [phone]
• Linda Smith
• Schedule Manager
• 621 I Professional and Allied Healthcare
  Staffing
• Teleradiology Initiative
• [phone]

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